Contract Law Questions

Determining the Legal Status of Contracts

State whether the following statements are void, voidable, valid or unenforceable and provide a reason for your answer

Q.1.1 Amanda aged 6 purchases a doll from R’US Toys without the assistance from her father.

Q.1.2 Alexander, an unrehabilitated insolvent, enters into an agreement to sell his HI-FI set to Steven without the assistance of his trustee. The HI-FI set formed part of the insolvent estate.

Q.1.3 Musa aged 15, buys a dress from his school friend for his sister for R800 without being assisted by his mother, Musa uses the money that he made from doing chores around the house.

Q.1.4 Christan enters into a contract with a hitman, Herbert, to kill his ex-boss for R20 000

Q.1.5 Jessie agrees verbally to stand surety for Andrew’s student loan from XYZ Bank. (2)

Q.1.6 Fire Fly (Pty) Ltd enters into a contract of sale with Hintze, aged 25, in terms of which Hintze buys a gaming console from Fire Fly (Pty) Ltd for R4 500.

Q.1.7 Angela aged 17 received a donation from Teapot Productions. Angela was not assisted by her mother.

Q.1.8 Julian gets very drunk at his local pub and enters into a contract of sale with the barlady for his car. The car is valued at R100 000 and he sells it to the barlady for R1500. 19; 20; 21 2019 © The Independent Institute of Education (Pty) Ltd 2019

Q.1.9 Gemma, who was declared a prodigal, buys 10 pairs of handbags without being assisted by Joanne, her curator.

Q.1.10 Alice who is married out of community of property to Muhammed, enters into a contract with True Bank Ltd in terms of which she stands surety for debts incurred by her sister, Susan. Muhammed does not co-sign the suretyship agreement. 

Sheila lives in Durban. On 10 September 2018 Sanjay, who lives in Richards Bay calls Sheila and offers to buy Sheila’s laptop for R2 500. Sheila accepts the offer telephonically. Sheila likes to confirm things in writing. She sends an email to Sanjay on 10 September, which he receives on that day, but which he only reads the following day. On 10 September Sheila also sends a fax to Sanjay confirming their agreement. Although Sanjay received the fax on 11 September, he only read the contents on the 12 September

Q.2.1 Answer the questions as follows:-

Q.2.1.1 Who is the offerer and who is the offeree? 

Q.2.1.2 When and where did the contract come into force and effect? 

Identifying the Parties to a Contract

Q.2.1.3 Which theory ought to be used to answer Q 2.1.2 correctly?

Q.2.2 Allison places an advertisement in the newspaper to sell her studio apartment in Umhlanga for R900 000-00. Simon having recently relocated to Durban for work is interested in the apartment after viewing it.

However, before Simon accepts Allison’s offer, he would like to understand:

• the legal position in respect of acceptance of an offer;

• the legal formalities that that the parties must comply with; and

• the concept of warranties.

Write an essay that will assist Simon understand the issues (outlined above) that he has concerns with. In your essay you will need to include a discussion of the legal position as well as apply the law to the facts provided above. 

Alex and Julie entered into a civil marriage on 15 January 2018. They did not sign any documentation other than the marriage register as provided for in the Marriage Act 25 of 1961. PLEASE NOTE - where a question contains an assumption the assumption is applicable to that question only unless the context indicates otherwise.

Q.3.1 What marital regime regulates their marriage?

Q.3.2 Based on your answer in Q.3.1 above, identify the type of consent required, if any, by Alex in each of the following instances in order to bind the joint estate AND state the reason for such consent:-

Q.3.2.1 Julie sells the matrimonial home microwave to Suresh for R800. 

Q.3.2.2 Julie owns a vegetable shop. She concludes an agreement with Andy to purchase R 500 worth of vegetables from her monthly, for a period of six (6) months.

Q.3.2.3 Julie goes to the shop and buys bread and milk for R35. 

Q.3.2.4 Julie sells her diamond necklace to Andile for R10 000. 

Q.3.2.5 Julie sells the residential house owned by her and Alex for R50 000. 

Q.3.3 Julie would like to sign as surety for her daughter, Karla, who has applied for a loan, to pay for her university fees. The amount of the loan is R100 000, however, Alex is being difficult and irrational and refuses to give his consent. What can Julie do in this regard?

Q.3.4 Assume that at the time that Alex and Julie decide to enter into a civil marriage, Alex’s' business is really successful. However, in view of the prevailing economic climate, he felt that it would be better to protect his business and assets from attachment of creditors of his spouse, Julie, who is also running a successful business.

Q.3.4.1 Identify the document that both Julie and Alex must sign AND identify the formalities that are required for such a document to become binding against third parties.

Q.3.4.2 What matrimonial system will regulate their marriage after this document is signed? (1)

Q.3.5 Assume for the purposes of this question that Julie and Suresh conclude an agreement in terms of which they agree, that Julie will pay Suresh the amount of R50 000 to murder her husband, Alex.

Q.3.5.1 Will this contract be valid and enforceable? Substantiate AND explain your answer by making reference to:

• the relevant contractual requirement/s that are in question;

• defining or explaining the correct requirement/s; and

• the reasoning (rationale) for the correct answer.

Q.3.5.2 Briefly discuss the legal consequences of an agreement such as the one between Julie and Suresh.